Meeting Packet — Regulatory Reform & Economic Development Subcommittee, Florida House (October 17, 2023)
Summary
This meeting packet is for the Regulatory Reform & Economic Development Subcommittee of the Florida House of Representatives Commerce Committee, meeting Tuesday, October 17, 2023, 8:30 AM – 10:30 AM. The agenda lists an update by the Florida Gaming Control Commission and a panel discussion on illegal gaming in Florida. The Commission slides state that from August 2022 through September 2023, the FGCC received 1,561 reports of illegal slot machine gambling activity, and that six joint operations seized $1,151,000 in cash and 858 illegal slot machines, with 52 arrests. A later FCCG presentation on gambling ads states that 888-ADMIT-IT is Florida’s only problem gambling HelpLine.
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- 2023 10 17 3236 Regulatory Reform Economic Development Subcommittee Meeting Packets Fn Rrs
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- 2023 10 17 3236 Regulatory Reform Economic Development Subcommittee Meeting Packets Fn Rrs 10 17 23
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“Meeting Packet — Regulatory Reform & Economic Development Subcommittee, Florida House (October 17, 2023).”
Original at www.flhouse.gov, dated 2023-10-17. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-10-17-2023-10-17-3236-regulatory-reform-economic-development-subcommittee-meeting-packets-fn-rrs-10-17-23/
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Regulatory Reform & Economic
Development Subcommittee
Tuesday, October 17, 2023
8:30 AM – 10:30 AM
Webster Hall (212 Knott)
Meeting Packet
Paul Renner Tyler Sirois
Speaker Chair
The Florida House of Representatives
Commerce Committee
Regulatory Reform & Economic Development Subcommittee
Paul Renner Tyler Sirois
Speaker Chair
Meeting Packet
Tuesday, October 17, 2023
8:30 am – 10:30 am
Webster Hall (212 Knott)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Update by the Florida Gaming Control Commission
V. Panel Discussion on Illegal Gaming in Florida
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
Florida Gaming Control
Commission
HOUSE SUBCOMMITTEE ON REGULATORY REFORM & ECONOMIC DEVELOPMENT
OCTOBER 17, 2023
LOUIS TROMBETTA, EXECUTIVE DIRECTOR
ROSS MARSHMAN, GENERAL COUNSEL
CARL HEROLD, DIRECTOR OF LAW ENFORCEMENT
Roadmap
• Brief History and Overview of Lawful Gambling
• A Closer Look at Slot Machines and Illegal Slot Machine Enterprises
• Harms Caused by Illegal Gaming, Particularly Illegal Slot Machine
Gaming
• FGCC Gaming Enforcement Joint Operations
2
Gambling in Florida Timeline
2004: 2018:
Constitutional Constitutional
Amendment to Amendments
authorize slot prohibiting
1931: Pari- machine gaming wagering on
in Broward and greyhound
mutuel
1986: Miami-Dade racing and
Wagering on Constitutional counties if granting voter
Horse and Dog Amendment to approved via control of the
Racing authorize Florida county expansion of
Authorized Lottery referendum casino gambling.
• • • • • • • • 1968: The
Florida
Constitution
1996: Poker
Authorized at
Pari-Mutuel
2010: Compact
with the
Seminole Tribe
2021: Gaming
Commission
Created,
includes a Facilities of Florida Decoupling and
prohibition on executed 2021 Gaming
"lotteries" other Compact with
than Pari-Mutuel the Seminole
pools authorized Tribe executed
at the time.
(Article X,
Section 7)
3
Gambling in Florida at a Glance
Gambling is Types of Legal and Regulated
Gambling
Licensed Slot Facilities Miami-Dade
• Calder Casino
generally • State Lottery • Casino Miami
prohibited • Pari-Mutuel Wagering • Hialeah Park Casino
• Poker Rooms • Magic City Casino
• Licensed Slot Facilities
• Charitable Gaming Licensed Slot Facilities Broward
• Promotions and • Gulfstream Park
Sweepstakes • Harrah’s Pompano Beach
• Bingo • The Big Easy Casino
• Indian Gaming • The Casino at Dania Beach
Specific Legal
Exceptions
4
Authorized Gambling in Florida
Fiscal Year 2022/2023 State Revenue Totals
Revenue Source Revenue Percentage
Amount
0
Panama
City
Pari-Mutuel Activity $6,173,212 2.1%
(39 Licenses)
Cardroom Activity $22,756,621 7.8%
(27 Facilities)
Slot Machine Activity $262,479,968 90.1%
(8 Facilities)
Tribal Activity $0 0%
(7 Facilities)
Total $291,409,802
5
Legal Slot Facilities
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0
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Panama
City
ach
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6
What is a Slot Machine?
The current definition, in Section 849.16, Florida Statutes, is quite broad.
Any [a] machine or device, [b] that upon activation is directly or indirectly caused to operate, and [c] the
user may receive, or become entitled to receive, [d] a thing of value, or [e] secure additional chances or
rights to use such machine.
•The definition:
• Captures games containing any element of chance and games of skill.
• Includes a rebuttable presumption – if the device looks like a slot machine and involves the payment
of money and an award of anything in value.
7
Recent History, 2013
• Allied Veterans of the World.
• Three-year, multi-state, multi-agency investigation into illegal gambling operations at
“internet cafes” associated with Allied Veterans of the World concluded with the arrest of
57 people, and seizure of about 300 bank accounts and around $64.7 million.
•Resulted in an amendment to the definition of a “slot machine.”
• During its 2013 regular session, the Florida Legislature made several amendments to
various provisions of chapter 849, Florida Statutes. These amendments, in part, expanded
the definition of a slot machine, captured more forms of gaming, and created a rebuttable
presumption that devices that look and play like slot machines are indeed slot machines.
• Additionally, amendments touched on game promotions and charitable gambling.
8
Recent History 2014 & 2015
• 2014 -- The amended definition of a slot machine was challenged by family
arcade businesses that felt they were unfairly impacted. (e.g., Chuck E’
Cheese, Dave and Buster’s).
• 2015 -- To give law enforcement additional clarity when it came to
distinguishing between “innocent” and “guilty” machines, and to prevent the
expansion of casino-style gambling, the Florida Legislature amended Chapter
546, Florida Statutes, and created Section 546.10, Florida Statutes.
9
Family Amusement Games Act
Defines “innocent machines” as ones having no material element of chance inherent in the
game or machine whatsoever.
Type A Device Type B Device Type C Device
10
Analysis of Slot Machines?
Yes Is the machine or device No
Is the machine or device
Does the machine or located in any of the 8 located in one of 7
device entitle the player licensed pari-mutuel Seminole Tribe of
to something of value? facilities in Broward or Florida gaming facilities?
Miami-Dade County?
No
No No
Is the machine or device Is the machine or device
The machine or device is being played in an otherwise lawful
an illegal slot machine. connection with a bona amusement game or
fide game promotion? machine?
11
Illegal Slot Machine Businesses
The FGCC has spent the last year investigating and intelligence gathering about illegal slot
machine businesses operating in this state.
Summary of what we have learned:
• The scope of the problem is much larger than initially anticipated.
• There are significant adverse harms associated with the activity.
• Success will require collaborative and coordinated efforts.
• Obstacles will continue to evolve but can be overcome.
12
Illegal Slot Machine Businesses
13
Illegal Slot Machine Businesses: Scope
• FGCC THERE ARE 580K + ILLEGAL GAMING MACHINES NATIONWIDE
• From August 2022 through September 2023,
the FGCC received 1,561 reports of illegal slot MIDWEST: 97K+
machine gambling activity.
• Reports are location-based, not machine- 0'-___J•"tlll!li,~hiii,i"=ii!!l!i,:P.!l➔!llll"ill!f~!11■
1•
based.
StopillegalGambling.org
14
Reports
of Illegal
Activity
15
Illegal Slot Machines: Traditional Machines
16
Illegal Slot Machines: Fish Tables
17
Illegal Slot Machines: “Skill” Based Machines
CREDITS
307191
WINS
0
18
Relevant Criminal Statutes
Statute Offense Responsible Party
§ 546.10(9) Improper amusement game or machine Operators
§ 550.155 Purchase of pari-mutuel tickets for hire Patrons
§ 817.41 Misleading advertising Operators
§ 849.01 Keeping gambling houses Operators
§ 849.02 Agents or employees of keeper of gambling house Employees and agents
§ 849.03 Renting houses for gambling purposes Landlords
§ 849.08 Gambling Patrons
§ 849.09 Prohibited lottery Operators/Patrons
§ 849.10 Printing lottery tickets, etc. Operators/Property Owners
§ 849.15 Manufacture, sale, possession of slot machines Operators/Distributors
§ 849.20 Machines and devices are a common nuisance Operators
19
Illegal Slot Machines are Harmful
Heightened Risk of Criminal Activity:
Illegal slot machines are regularly associated with many other types of criminal activity.
• Drugs, violence, robberies.
• Organized criminal elements.
Lack of Consumer Protection:
Illegal slot machine businesses do not provide any consumer protection that the public has otherwise come to expect
when participating in gambling at a regulated casino.
• Illegal slot machine games are not tested to ensure that the software is legitimate or fair.
• No recourse for players who feel they are cheated.
• There are no responsible gaming protections being followed.
20
Illegal Slot Machines are Harmful
Impact on State Revenue:
The legislature created a framework where licensed slot machine businesses must pay multi-million-dollar license fees
and a 35% tax rate on their gross revenue, which is used to support Florida education. Illegal gaming facilities do not pay
these fees or taxes and offer no benefit to the state for the slot machine gaming activities they offer.
Impact on Legal Gaming:
Illegal gaming facilities also have a negative impact on the legal gaming market in Florida. First, dollars spent at these
facilities are not taxed the way regulated dollars are, and because they are earned by criminal enterprises, the monies
may not end up in the economy at all. Second, the lack of consumer protections may disenfranchise people from going
to licensed facilities. They may get a negative impression from the illegal facilities because of the lack of consumer
protection and not realize that protections do exist in a regulated environment.
21
Obstacles
•Size of the Problem
• Stand-alone arcades
• 25 – 50+ illegal gaming machines per arcade
• Bars and Convenience stores
◦ 2+ machines
•Knowledge Gap
• Local Government Partners
• Law Enforcement Partners
•Continued Resources
•Marketing – “Adult amusement arcade” “Internet Café” to obfuscate both local law enforcement
and the public on the legalities of the illegal gaming machines being offered.
• The use of state amusement tax and local tax stickers being placed on the illegal machines
22
Successes
• Collaboration with law enforcement agencies
• Jurisdiction
• Advice
• Training
• Communication with cities and counties
• Outreach to other stakeholders
• FGCC Gaming Enforcement Joint Operations
Six joint operations seized:
• $1,151,000 in cash
• $2,000,000+ in real estate
• 858 illegal slot machines
• 52 arrests
• 40 grams of fentanyl and 10 grams of meth
FGCC, Chipley Police Department, Hillsborough Sheriff's Office, Holmes County
Sheriff’s Office, Manatee County Sheriff’s Office, Palm Beach Sheriff's Office, St. Lucie
County Sheriff’s Office and St. Peterburg Police Department participated
23
Contact Information
Louis Trombetta, Executive Director
• (850)597-4813
• Louis.trombetta@flgaming.gov
Henry Mahler, Legislative Affairs Director
• (850)964-2766
• Henry.Mahler@flgaming.gov
Eric Carr, External Affairs Director
• (850)964-1714
• Eric.Carr@flgaming.gov
24
How Gambling Ads Target &
Negatively Impact Populations at
Risk for Problem Gambling
Eric Randazzo
Program Consultant
FCCG
BACKGROUND & MISSION
Established in 1988 as a Gambling Increase public awareness regarding
Neutral 501(c)(3) educational and the risks and consequences
advocacy organization. associated with gambling;
Governed by a Board of Directors. Provide assistance to problem
gamblers, their families, and others
Addresses Problem Gambling in adversely impacted;
Florida as a Public Health Issue.
Advocate for programs, services,
funding, and other supports to
address population-specific needs.
FCCG PROBLEM GAMBLING
PROGRAMS & SERVICES
The FCCG furnishes many Florida problem gambling specific services:
Operates the statewide 24/7, Confidential, and Multilingual HelpLine: 888-ADMIT-IT
Provides Responsible Gaming & Player Protection Programming (RGPPP) for participating Florida
gaming facilities (includes employee training, responsible gaming messaging, signage featuring the
helpline, and additional ongoing outreach efforts, such as RGEM and PGAM partnership initiatives)
Educates mental health, addiction, medical, and other health care professionals through training
programs to identify/assess/treat problem gambling
Develops targeted prevention, education and outreach programs (e.g. adolescents, college students,
older adults, etc.) and facilitates statewide outreach through the establishment of community
educators and partnerships
Represents Florida residents on gambling-related issues before local, state and federal policy makers
Works with legal and judicial entities, as well as law enforcement on gambling related cases
Sponsors/conducts research on gambling addiction impacts
GAMBLING – VS. –
PROBLEM GAMBLING
1% - 3% of the US
population have a How Does Florida Compare?
gambling disorder. Overall prevalence of problem and pathological
gambling among Florida adults 2.1%
700,000+ Floridian’s considered “At-Risk”
problem gamblers
*Source: (Rotunda & Schell, 2012)
HOW HAVE GAMBLING ATTITUDES &
EXPERIENCES CHANGED SINCE 2018?
(2021 NGAGE 2.0 SURVEY – NATIONAL SURVEY DATA)
In 2021, the NCPG’s 2nd National Survey on Gambling Attitudes and Gambling
Experience (NGAGE 2.0), following NGAGE 1.0 in 2018, became the first effort to
measure national changes in gambling behaviors since the expansion of sports
betting was greenlighted by the U.S. Supreme Court.
The survey found a rise in problematic gambling since 2018, especially among young
online sports bettors. Risk increased most among two already high-risk groups: younger
gamblers (ages 18-44) & sports bettors and those who play daily fantasy sports.
This spike in problems related to gambling reflects both the impacts of the
COVID-19 Pandemic and the effects of the massive expansion of sports betting and
online gambling.
*2021 National Survey of Gambling Attitudes and Gambling Experiences (NGAGE 2.0)
NOTABLE INCREASES IN ONLINE SPORTS
BETTING, RISK, & PROBLEMATIC PLAY
(2021 NGAGE 2.0 SURVEY – NATIONAL SURVEY DATA)
Between 2018 and 2021, the
number of Americans who bet
on sports grew by 30%,
representing an increase of
15.3 million sports bettors in
18 months.
Between 2018 and 2021, the
number of online gambling on
sporting events or internet
games grew even more, with an
additional 25.5 million adults
more who now gamble this
way.
*2021 National Survey of Gambling Attitudes and Gambling Experiences (NGAGE 2.0)
HOW DOES 888-ADMIT-IT HELPLINE
DATA COMPARE?
TRENDS IN GAMBLING ADS $2
BILLION
• Celebrity & Social Media Influencer Endorsements
• Familiarity & Trust: When a familiar face promotes a product, it makes it
seem as if the product itself is familiar and trustworthy, which makes people 2023 (est.)
more likely to convert & recommend it to others.
SPORTS BETTING AD SPEND
• Emotional & Aspirational Connection: Celebrities/influencers naturally
evoke an emotional response & people manifest aspirations through them.
• Perceived Knowledge: “As a professional football player, Peyton Manning
must know more about sports betting than I do.” This also plays into the
myth that sports betting & other types of gambling are skill-based. 2022
• These ads are heavily targeted to young adults (18-25) and in
particular young males, but also to Millennials & older adults.
• Advertising reach is far from an exact science, so underage people are also
exposed. Likewise, people outside the geographical target are reached too. 2021
Consider as well that today’s TV ads are posted online to YouTube and
other social media, increasing reach and also enabling organic reach and
sharing beyond the intended target. Ads are designed to be sensational in
hopes of leveraging this & achieving virality. It’s no surprise that youth like to
$1
BILLION
watch sports, and that is now a gambling-integrated experience!
1DISQO report: Making marketing wagers on online sports betting.
WHAT IMPACT DO GAMBLING ADS HAVE
ON GAMBLING BEHAVIOR?
THE ALARMING IMPACTS OF GAMBLING
ADVERTISING ON ADOLESCENTS
Rossi R and Nairn A (2021). What are the odds? How Gambling Adverts Appeal to Children and Young Persons on Twitter (PDF, 7,199kB).
Rossi R, Nairn A, Smith J, Inskip C (2021). “Get a £10 Free Bet Every Week!”—Gambling Advertising on Twitter: Volume, Content, Followers, Engagement, and Regulatory Compliance. Journal of Public Policy
& Marketing. 40(4): 487-504.
Watching Sports Became a Different Experience
After the Repeal of PASPA in 2018
888-ADMIT-IT IS THE ONLY PROBLEM
GAMBLING HELPLINE FOR FLORIDIANS
888-ADMIT-IT is Florida’s ONLY Problem
Gambling HelpLine.
• NCPG’s national helpline numbers (1-800-GAMBLER, 1-800-522-4700) have expanded
their footprint in our state, in part through a $6 million grant with the NFL and through
national operators/advertisers (Caesars, Churchill Downs, William Hill, DraftKings,
FanDuel, etc.), but rely on an ineffective area-code-only call routing system that does
not best serve Florida citizens or gambling operators.
• Promotion of these national helpline numbers discourages Floridians from ultimately
seeking help for themselves or for loved ones, because they will potentially reach the
wrong call center instead of FCCG, depending upon the origin of the area code of the
telephone used, and be told that assistance cannot be provided.
THANK YOU!
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